Federal Prosecutors Warn
Andersen of Indictment Risk

Federal prosecutors warned Arthur Andersen LLP they may seek to indict the firm for alleged obstruction of justice related to its accounting work for Enron Corp., people close to the case said.

Andersen lawyers met with senior Justice Department officials on March 1, and again on Sunday, and were told the government might seek an indictment despite the potentially devastating consequences to the venerable accounting firm, the people close to the case said. But an indictment isn't imminent, and the two sides are still in...